PODCAST: Transferring Family-Owned Businesses: Financial Factors and Expert Guidance

Navigating the Transition of Family-Owned Businesses

Written by Jeff Dvorachek

June 29, 2023

In this episode of the Tax Insights podcast by Hawkins Ash CPAs, Jeff Dvorachek, a tax partner at the firm, discusses the financial factors involved in transitioning a family-owned business to the next generation.



The options of gifting versus selling the business are explored, along with considerations such as liabilities and tax consequences. Financing options and the concept of stepped-up basis are also addressed. Listeners are directed to the Hawkins Ash CPAs website for further information.

Navigating the Transition of Family-Owned Businesses: Key Considerations and Expert Insights

In the dynamic world of business, understanding the financial health of your company is essential for making informed decisions and steering your enterprise toward success. Monitoring various financial ratios provides valuable insights into your business’s performance, highlighting trends, identifying areas for improvement, and ensuring a sustainable future. In this episode of Tax Insights, presented by Hawkins Ash CPAs, Jeff Dvorachek, a certified public accountant, sheds light on the significance of three critical financial ratios: liquidity ratio, efficiency ratio, and profitability ratio.

Analyzing Business Trends:

When running a business, it can be challenging to assess its true standing solely by looking at the numbers. However, financial ratios offer a powerful solution by presenting a clear picture of where your business is headed. By evaluating these ratios, you can determine if your business is trending upwards, downwards, or stagnating, enabling you to proactively make necessary changes before it’s too late.

Liquidity Ratios – Ensuring Smooth Operations:

One of the key concerns for any business owner is the ability to meet both current and long-term financial obligations. Liquidity ratios, such as the current ratio and quick ratio, serve as essential tools for assessing your business’s ability to pay its bills on time. Understanding these ratios empowers you to gauge whether you’re on the right track to managing financial responsibilities efficiently and securing your company’s future.

Efficiency Ratios – Maximizing Resources:

Efficiency ratios offer valuable insights into how well your business utilizes its assets and human resources. In an era where every penny counts, optimizing operational efficiency is crucial. By analyzing efficiency ratios, you can identify areas where resources may be underutilized or where inefficiencies exist. Addressing these inefficiencies ensures that you’re making the most of your investments, ultimately leading to improved productivity and increased profitability.

Profitability Ratios – Identifying Revenue Generators:

Profitability is the lifeline of any successful business. Profitability ratios provide a detailed breakdown of which products or services generate revenue and which might be causing financial strain. Armed with this knowledge, you can make informed decisions about product lines, services, or processes that might need adjustments. Focusing on profitability ratios empowers you to steer your business in a direction that ensures a strong bottom line and sustainable growth.


As Jeff Dvorachek emphasizes in this Tax Insights podcast episode, financial ratios are indispensable tools for any business owner seeking to thrive in today’s competitive landscape. By monitoring liquidity, efficiency, and profitability ratios, you can take proactive steps to secure your company’s financial health, optimize resources, and make data-driven decisions that will lead your business to new heights. For more valuable tax-related information and expert advice, visit Hawkins Ash CPAs’ website at hawkinsashcpas.com, and don’t forget to follow them on Facebook and YouTube for quick and engaging tax topics. Remember, a well-informed business owner is a successful one. So tune in to Tax Insights and stay ahead in the world of finance!

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Jeff Dvorachek
As a partner, I have thorough experience providing tax services to individuals, privately held businesses, nonprofit entities and estates and trusts. I also provide compilation and review services.

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